Reverse mortgages have helped countless senior homeowners convert a portion of their home equity into much-needed cash to provide added income during retirement.
This type of loan offers many advantages for seniors, and it’s no surprise that many have been applying in recent years. If you think a reverse mortgage is right for you, contact us today for complete information and the latest reverse mortgage rates.
One of the reasons why reverse mortgages are attractive is that they allow borrowers to retain ownership and live in their homes as long as they remain in good standing with their lender. Seniors also love that they don’t have to pay a monthly mortgage while still getting the cash they need for retirement.
However, there are cases where homeowners fall victim to mortgage-related fraud –particularly seniors. Protecting our seniors from scammers is crucial to us, so please read this article to get familiar with some of the most common tactics scammers use with reverse mortgage schemes.
Remember, the primary way to avoid being scammed is to work with a reliable and experienced local mortgage advisor. Don’t be afraid to ask for referrals and read testimonials too.
No matter what type of mortgage you’re getting, make sure you work with a loan advisor that takes the time to answer your questions and guide you through the process.
Vendors/contractors usually target seniors with a scheme that offers repairs, remodel, or other home improvement services. When a homeowner expresses concern about payment for the services rendered, they suggest a reverse mortgage as the solution.
Another scam to look out for is one committed by a financial planner or investment advisor. They try to sell seniors a financial product they don’t need and suggest that they pay for it by taking out a reverse mortgage.
They may offer services like stock purchases or life insurance which are shady at best.
Seniors should also be careful about giving anyone power of attorney (POA). A POA document allows the holder to act on the senior’s behalf regarding financial matters, including taking out a reverse mortgage.
There have been many instances where relatives with ill-intentions have taken advantage of POAs and secured reverse mortgages in the senior’s name while diverting the proceeds into their accounts.
This type of reverse mortgage scam involves predatory property flippers that offer seniors the “opportunity” to buy a lower-cost home without any down payment. They’ll suggest a special type of reverse mortgage called a Home Equity Conversion Mortgage loan to pay for the lower-cost home but will find a way to divert most (or all) of the payment to themselves.
The victim will think they are getting housing through a HUD program, but they are actually purchasing a distressed property that was just given a facelift to perpetuate the scam.
Reverse mortgages are a great help and resource for those in their retirement years. However, it’s essential to understand how a reverse mortgage works so you can avoid scams and know whether it’s the best option in your situation.
If you’d like to learn more about this loan –or any other home-financing opportunity –please contact us! Our goal is to help you achieve your financial goals confidently and easily. Please, let us know –how can we help?
We've been helping customers afford the home of their dreams for many years and we love what we do. Licensed in NY and Florida
Company NMLS: 5947
Fidelity First Mortgage Corp is a registered Mortgage Broker with the NYS Dept of Financial Services. And with the Florida Dept of Financial Services. All loans are arranged through 3rd Party Lenders.
3974 Amboy Road Suite 302
STATEN ISLAND, NY 10308
Phone: (718) 759-1035
Fidelity First Mortgage Corp strives to ensure that its services are accessible to people with disabilities. Fidelity First Mortgage Corp has invested a significant amount of resources to help ensure that its website is made easier to use and more accessible for people with disabilities, with the strong belief that every person has the right to live with dignity, equality, comfort and independence.
Fidelity First Mortgage Corp makes available the UserWay Website Accessibility Widget that is powered by a dedicated accessibility server. The software allows bestrateone.com to improve its compliance with the Web Content Accessibility Guidelines (WCAG 2.1).
Fidelity First Mortgage Corp accessibility menu can be enabled by clicking the accessibility menu icon that appears on the corner on the page. After triggering the accessibility menu, please wait a moment for the accessibility menu to load in its entirety.
Fidelity First Mortgage Corp continues its efforts to constantly improve the accessibility of its site and services in the belief that it is our collective moral obligation to allow seamless, accessible and unhindered use also for those of us with disabilities.
Despite our efforts to make all pages and content on Fidelity First Mortgage Corp website fully accessible, some content may not have yet been fully adapted to the strictest accessibility standards. This may be a result of not having found or identified the most appropriate technological solution.
If you are experiencing difficulty with any content on Fidelity First Mortgage Corp website or require assistance with any part of our site, please contact us during normal business hours as detailed below and we will be happy to assist.
If you wish to report an accessibility issue, have any questions or need assistance, please contact us by sending an email to: Greg@BestRateOne.com